Latest news with #2025GlobalTradePulseSurvey
BusinessToday
13-06-2025
- Business
- BusinessToday
Malaysian Businesses Rethink Strategy Amid Rising Trade Costs, HSBC Survey Reveals
Malaysian companies are feeling the pressure of rising trade costs and global supply chain disruptions, forcing a strategic shift in operations and investment plans, according to HSBC's 2025 Global Trade Pulse Survey. The survey, which captured insights from over 5,700 companies across 13 markets — including 250 from Malaysia — revealed that 55% of Malaysian businesses cite rising costs from tariffs and trade policies as their top concern. In response, 42% have already refocused on domestic markets, with another 40% planning to follow suit. Meanwhile, 37% have increased inventory levels to cushion against supply disruptions, with nearly half preparing to do the same. Despite these challenges, Malaysian firms remain optimistic as 91% believe they can grow international trade, surpassing the global average of 89%. Encouragingly, 73% revealed that trade uncertainty has prompted innovation and business evolution, while 55% are actively seeking strategic advice on restructuring, supply chain realignment and overseas expansion. 'The uncertain tariff and trade landscape is driving Malaysian businesses to adapt with remarkable resilience. 'While global supply chains are shifting, Malaysia's strong trade links, particularly in Asia, offer significant growth potential,' HSBC Malaysia Chief Executive Officer and Head of Banking Datuk Omar Saddiq said. The survey also shows a clear pivot in trade focus, with Malaysian businesses increasing engagement with China (61%), South Asia (55%) and North Asia (44%). Interest in markets outside of Asia remains steady, with 32% planning increased trade with both Europe and the US, especially in high-value sectors like electronics and semiconductors. As they navigate cost pressures, 64% of Malaysian firms have adopted new technologies, while nearly half (48%) have developed new products or services to remain competitive. Strategic shifts toward regional growth (57%) and internal efficiency improvements (54%) are also gaining traction, the survey showed. To manage working capital under strain, the survey highlighted that businesses identified cash and liquidity management (64%), better payment terms (56%) and supply chain finance (55%) as the most helpful support measures. With over 70% expecting prolonged cost increases and facing an average 18% drop in revenue, the path forward is clear: Businesses must stay agile and form strong strategic partnerships to thrive in an increasingly complex global trade environment. Related
The Sun
12-06-2025
- Business
- The Sun
Rising costs top concern of Malaysian businesses: HSBC survey
PETALING JAYA: Malaysian businesses are grappling with rising costs and persistent supply chain disruptions, prompting them to reconsider their strategies and investment plans. According to HSBC's 2025 Global Trade Pulse Survey, the ongoing changes in tariffs and evolving trade policies continue to exert pressure on local companies, reshaping the landscape for growth and operations. Insights from the survey capture the perspectives and intentions of more than 5,700 international firms across 13 markets, including Malaysia, on the challenges and outlook related to tariffs and global trade. The survey found that, currently, the biggest concern for more than half of Malaysian businesses (55%) is rising costs due to tariffs and other trade-related factors. In response to this, 42% of Malaysian businesses have shifted their focus to domestic markets, prioritising local customers and reducing international exposure while 40% of businesses plan to do the same. In addition, the survey showed 37% of Malaysian businesses have increased their inventory levels to manage supply disruptions, with 49% planning to do so as well. Despite global uncertainties, 250 Malaysia-based companies surveyed are optimistic about their international growth but need external strategic advice on the matter, the findings showed. Furthermore, 91% of companies are confident that they can grow international trade, surpassing the 89% global average. More encouragingly, 73% believe that trade uncertainty has prompted their business to evolve and explore new opportunities, while 55% are seeking strategic advice on international expansion, restructuring or supply chain realignment. Considering current trade dynamics, Malaysia-based businesses are adapting their trade strategy to significantly increase connections with China (61%), South Asia (55%) and North Asia (44%). Beyond Asia, Malaysian businesses also plan to trade more with Europe and the United States (both 32%). HSBC Malaysia CEO and head of banking Datuk Omar Siddiq said despite the challenges posed by the uncertain tariff and trade landscape, businesses in Malaysia are demonstrating resilience and adaptability in the way they operate. 'While supply chains may be further reconfigured, there continues to be strong potential for local companies to leverage on Malaysia's strong trade ties, particularly in Asia. Having said that, it is key to note that markets like the US remain key trade destinations for Malaysia for high-value sectors such as electronics and semiconductors,' he said in a statement. While managing costs is top of mind for Malaysian businesses during this period of global uncertainty, the HSBC survey noted that companies are using the opportunity to innovate and adopt new technologies to boost operational efficiencies. It showed that 64% of Malaysian businesses have adopted new technology or digital platforms, while 48% have developed new products and services. Other growth opportunities that Malaysian businesses are considering include shifting their focus to domestic or regional growth (57%) and improving their internal efficiencies or changing their cost structures (54%). During the current period of trade disruption, Malaysian businesses find cash and liquidity management as the most helpful form of support in managing working capital (64%), followed by improved payment terms with buyers and suppliers (56%) and supply chain finance (55%). 'With over 70% of Malaysian businesses anticipating sustained cost increases from the impact of tariffs and trade uncertainty on the cost of doing business, and businesses facing an average 18% drop in revenue, the imperative for strategic adaptation is clear. 'Despite uncertainties, the world is also full of opportunities. Navigating this climate requires not only agility, but strong partnerships to ensure sustained growth in a shifting global economy,' Omar said.
New Straits Times
12-06-2025
- Business
- New Straits Times
HSBC Survey: Malaysian firms turn inward amid rising trade pressures
KUALA LUMPUR: Around 42 per cent of Malaysian businesses have shifted their focus to the domestic market, prioritising local customers and minimising exposure to global uncertainties, according to HSBC's 2025 Global Trade Pulse Survey. This strategic pivot reflects efforts by companies to mitigate the effects of tariffs and other trade-related challenges on their operations. Among the 250 Malaysian firms surveyed, more than half flagged rising costs from tariffs and trade barriers as a key concern. To address ongoing supply chain disruptions, 37 per cent have already increased inventory levels, while another 49 per cent plan to do the same, signalling a broader push towards strengthening supply chain resilience. Despite the global uncertainties, optimism about international growth remains high among Malaysian businesses but they need external strategic advice on the matter. 91 per cent of them expressed confidence in their ability to grow international trade, surpassing the global average of 89 per cent. Encouragingly, 73 per cent of respondents believe that trade uncertainty has prompted their businesses to evolve and seek new opportunities. Meanwhile, more than half are actively seeking strategic advice on international expansion, business restructuring or supply chain realignment. Considering current trade dynamics, 61 per cent of the local businesses are adapting their trade strategy to significantly increase connections with China, followed by South Asia (55 per cent) and North Asia (44 per cent). 32 per cent of them plan to trade more with Europe and the United States. HSBC Malaysia chief executive officer and head of banking Datuk Omar Siddiq said the businesses in Malaysia continue to show resilience and adaptability in navigating the challenges posed by the uncertain tariff and trade landscape. "While supply chains may be further reconfigured, there continues to be strong potential for local companies to leverage Malaysia's strong trade ties, particularly in Asia. "Having said that, it is key to note that markets like the US remain key trade destinations for Malaysia for high-value sectors such as electronics and semiconductors," he said in a statement. The survey also pointed out that while managing cost remains a top priority for Malaysian businesses amid global uncertainties, many are seizing the opportunity to innovate and adopt new technology to boost operational efficiencies. HSBC said 64 per cent of Malaysian businesses have adopted new technology or digital platforms, while 48 per cent have developed new products and services. Other growth opportunities that the businesses are considering include shifting their focus to domestic or regional growth (57 per cent) and improving their internal efficiencies or changing their cost structures (54 per cent). The survey also indicates that during the current period of trade disruption, Malaysian businesses find cash and liquidity management as the most helpful form of support in managing working capital (64 per cent), followed by improved payment terms with buyers and suppliers (56 per cent) and supply chain finance (55 per cent). "With over 70 per cent of Malaysian businesses anticipating sustained cost increases from the impact of tariffs and trade uncertainty on the cost of doing business and businesses facing an average 18 per cent drop in revenue, the imperative for strategic adaptation is clear." "Despite uncertainties, the world is also full of opportunities. Navigating this climate requires not only agility but strong partnerships to ensure sustained growth in a shifting global economy," Omar added.
FF News
28-05-2025
- Business
- FF News
Global Businesses Brace for Supply Chain Headwinds
Global businesses have been hit with surging costs, supply chain disruptions, and are having to rethink their strategy and planned investments as tariffs and shifting trade policies continue to impact their enterprises. This is according to the findings of HSBC's 2025 Global Trade Pulse Survey, which offers insight into the business plans and sentiment of over 5,700 international firms across 13 markets regarding tariffs and trade. The survey reveals that two thirds of corporations have already experienced cost increases due to tariff and trade uncertainty – and the worst may be yet to come. Companies expect costs to escalate further in both the short-term (73%) and the long-term (72%). Businesses also expect an average decline in revenues of 18% due to supply chain delays. Over half of respondents (51%) feel rising costs are the number one concern for supply chain strategies and 85% of corporates have revised or plan to revise their pricing strategy upwards to reflect higher costs or market changes. Over three quarters of corporates (78%) are having to rethink their long-term business model. If tariff instability continues over the next two years, 43% of companies will rethink their international expansion strategy and 39% will shift their focus to domestic or regional markets. Despite these headwinds, optimism about expanding global trade is strong. Nearly 9 in 10 businesses (89%) are confident in their ability to grow international trade over the next two years. Businesses are also reconfiguring their supply chains and reassessing how and where they operate. Most are taking action or planning to carry out nearshoring (moving production closer to key customer markets, 83%) and reshoring (bringing production back to their home country, 77%). Businesses most likely to initiate nearshoring, a practice gaining most traction by globally exposed and production-centric sectors, are those in Technology, Media and Telecoms (87% have done so or plan to). Businesses most likely to have experienced an increase in costs to date are those in Consumer (70%), followed by Healthcare (69%), and TMT (69%). Encouragingly, a vast number of respondents see trade pressure as a catalyst for innovation, with 77% saying it has encouraged them to evolve and seek new opportunities. Many businesses (58%) have already adopted new technologies or platforms, 56% have improved internal efficiency or cost structures, and 51% have developed new products or services. The survey points to the emergence of new trade corridors in some of the markets surveyed and we are seeing global businesses strengthening their relationships with key markets outside their borders. Malaysia (61%) and Vietnam (52%) are expanding their relationships with China; India (54%) and the United States (51%) with Europe, and the United Kingdom (46%) and India (62%) with the United States. In some markets, optimism about international trade growth endures, led by India (96%) and the United Arab Emirates (94%). In line with the global positive outlook, larger businesses (those with a revenue over $2 billion) are confident about their ability to grow international trade over the next two years (82%), although less so than the average, (89%). They are also more likely to have adopted new technology or digital platforms in response to trade uncertainty in comparison to smaller businesses (those with a revenue of less than $500m) at 63% vs. 56%. Larger firms are more cautious than smaller corporates about their decision making and are more likely to have already delayed or paused investments (38% vs.30%). This is despite larger companies having a much wider access to pools of working capital. Smaller firms on the other hand, are often more agile and quicker to make decisions despite lacking the capital depth of their larger counterparts. Vivek Ramachandran, Head of Global Trade Solutions at HSBC, said: 'The current landscape of tariffs and trade uncertainty presents significant challenges for businesses, but they are showing great resilience and adaptability in the way they operate.' 'With over 70% of companies anticipating sustained cost increases, and businesses facing an average 18% drop in revenue, the imperative for strategic adaptation is clear. Navigating this climate requires not only agility, but strong partnerships to ensure sustained growth in a shifting global economy.' Companies In This Post HSBC
Business Times
28-05-2025
- Business
- Business Times
Singapore firms less optimistic of growth in international trade, but plan to deepen links with Asean, India: HSBC study
[SINGAPORE] Nearly nine out of 10 Singapore-based businesses say they are rethinking their long-term business models and planned investments in light of the recent tariff turmoil, according to HSBC's 2025 Global Trade Pulse Survey. The survey polled 5,750 businesses from 13 markets – including 250 firms from Singapore – with international operations and a turnover of between US$50 million and US$2 billion. Research was conducted between Apr 30 and May 12. The survey also found that Singapore firms expect revenue to decline by 22 per cent on average due to supply-chain delays. Firms in the city-state are slightly less optimistic (83 per cent) on international trade growth in the coming years, compared with their global peers (89 per cent). But the survey noted that Singapore firms 'are actively managing global uncertainties by tapping the Republic's strong trade links with key corridors for growth'. Given the current trade dynamics, one in two Singapore-based firms plans to increase trade with Asean and India (55 per cent), as well as mainland China (50 per cent). Beyond Asia, Singapore firms also plan to trade more with Europe (46 per cent) and the Middle East (38 per cent). A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up On a similar note, firms in the Republic plan to move or scale their operations in South Asia (56 per cent), mainland China (46 per cent) and Europe (38 per cent). Gilbert Ng, HSBC's head of banking for Singapore, corporate and institutional banking, noted that Singapore businesses continue to be resilient and adaptable despite the tariff and trade uncertainty. 'While supply chains may be further reconfigured, there continues to be strong potential for local companies to leverage Singapore's strong trade ties and tap opportunities that we see emerging from India, the Middle East and Europe.' Among Singapore firms, 59 per cent cited rising costs from tariffs and other trade-related factors as the biggest concern. As a result, 42 per cent of Singapore firms have adjusted their prices to account for the higher costs, with 44 per cent planning to do the same. In addition, 42 per cent of Singapore firms have increased their inventory levels to manage supply disruptions, with 46 per cent planning to do as well. At the same time, the survey found that Singapore firms are taking the opportunity to boost operational efficiencies. One in two Singapore firms (56 per cent) has developed new products and services, while 59 per cent have adopted new technology or digital platforms. Despite trade tensions, 43 per cent of Singapore firms surveyed have maintained their production capability in mainland China while expanding to other markets, with 40 per cent planning to do the same. Singapore firms also indicated cash and liquidity management as the most helpful form of support in managing working capital (61 per cent) amid trade disruption. This was followed by improved payment terms with buyers and suppliers (56 per cent), and supply chain finance (56 per cent). Aditya Gahlaut, HSBC's regional head of global trade solutions in Asia, noted that against a backdrop of trade uncertainty, many companies have held back on their capital expenditure to 'assess the new normal'. 'Working capital has become a high priority C-suite agenda item for many clients because much of it is now trapped in either inventory or receivables,' he said.
